BANKS IN THE ALGARVE

Caixa Geral de Depósitos (CGD)

Established in 1876, CGD is Portugal's largest and most traditional bank. As a state-owned institution, it is highly regarded for its stability and government-backed security. It maintains a massive physical presence with an extensive branch network across the Algarve and international operations in 23 countries.

Why choose CGD?

Target Audience: Primarily Portuguese nationals and residents who prioritize reliability and traditional banking.

Key Services: Offers a robust online platform (Caixadirecta), specialized youth/student accounts, and competitive mortgage and property financing.

Main Advantage: Provides the peace of mind of government-backed deposit security and unmatched physical accessibility throughout the region.

Ideal for: Portuguese residents who value tradition, stability, and wide branch availability.

Banco BPI: 

Banco BPI, part of the Spanish Caixa Bank Group, is Portugal's fourth-largest bank. It is a top choice for those seeking stability and personalized financial advice, maintaining a strong presence in the Algarve's tourist and expat hubs.

Key Highlights:

Target Audience: Ideal for families, long-term investors, and international retirees.

Investment Expertise: Offers over 20 investment funds and specialized Private Banking services with tailored financial counseling.

Expat-Friendly: Provides multilingual support (English, French, and German) across its digital platforms and branches.

Flexible Mortgages: Highly sought after for second-home financing, offering competitive fixed, mixed, and variable interest rates.

Diverse Accounts: Features five distinct account types designed for every life stage, from youth to Premium solutions.

Ideal for: Families with children, investment-focused clients, and those seeking long-term banking relationships. 

Banco CTT: 

Banco CTT leverages Portugal's national postal network to provide accessible, low-cost banking. It is a strategic choice for those living in rural or traditional areas of the Algarve where physical bank branches are increasingly rare.

Key Highlights:

Profile: A 100% Portuguese bank operating within CTT post offices, combining tradition with a modern low-cost model.

Best For: Retirees, residents in smaller towns, and anyone seeking in-person service without high "Big Bank" fees.

Extreme Accessibility: Offers the widest physical reach in the Algarve, from coastal towns to remote mountain villages like Monchique.

Low-Cost Fees: Features a transparent fee structure with maintenance costs significantly lower than traditional competitors (approx. €20/year).

Core Services: Focuses on essential banking (debit cards, SEPA transfers) and competitive mortgage options with clear terms for foreign buyers.

Personal Touch: Ideal for users who prefer face-to-face support while managing daily tasks like mail or bill payments.

Ideal for: Residents in smaller Algarve towns and those who value convenient local access. 

Millennium BCP: 

Millennium BCP is Portugal's largest private bank and a top choice for expats and international clients due to its extensive multilingual support. Established in 1985, it maintains nearly 700 branches across Portugal and operates in several foreign markets. In 2024, it was recognized by Euromoney as the Best Bank and Best Digital Bank in Portugal.

Why it stands out:

User-Friendly: Both the website and their award-winning mobile app are fully available in English.

Versatile Accounts: Offers specialized "Millennium Start" accounts for minors and multi-currency accounts (supporting over 12 currencies including USD and GBP).

Accessibility: Allows for a low minimum deposit of €150 and offers remote application options for specific accounts.

Ideal for: Expats, international families, and those who prioritize digital banking and English-language support. 

Santander Totta: 

As a subsidiary of the global Santander Group, Santander Totta is a top choice for international clients who value a familiar banking brand. Its strong presence across the Algarve makes it a convenient option for those looking for seamless cross-border integration.

Key Highlights:

Profile: A major Spanish-owned international bank with a massive global footprint.

Best For: Clients with existing Santander accounts in other countries and those seeking a digital-first approach.

Seamless Transition: Designed to make moving to Portugal easier for current Santander customers, allowing for a smoother account setup process.

Remote Accessibility: Offers the ability to apply for an account remotely and features a robust online platform for account opening.

Infrastructure: Provides a vast ATM network and competitive rates on international transfers, essential for the Algarve's mobile population.

Ideal for: Clients with existing Santander accounts, international business owners, and frequent travelers. 

International Banks in Portugal

If you already have a relationship with a global bank, you might consider using their Portuguese branch. However, be aware that many international players in Portugal now focus exclusively on High-Net-Worth individuals (Wealth Management) or Corporate Banking rather than everyday checking accounts.

Bankinter, Spain, Expat Retail Banking. Having acquired Barclays' retail business, they are the strongest international choice for standard accounts and mortgages.

Deutsche Bank Germany, Investment & Corporate. They sold their retail business (now part of ABANCA). Ideal for corporate clients and institutional investors. 

 Citibank USA, Corporate & Private Clients. They do not offer standard retail branches for the public; they focus on multinationals and high-net-worth families.

BNP Paribas, France, Corporate & Specialized Finance. Known for investment banking and "Personal Finance" (consumer credit), but not for daily retail walk-in branches.

ABANCA, Spain, Expats & Residents. By acquiring Deutsche Bank's former retail network, they have a strong presence in the Algarve with a focus on savings and mortgages. 

Key Advice for British Expats:

Since Barclays sold its retail operations in Portugal to Bankinter, British expats looking for a similar "premium" experience often choose Bankinter or Millennium BCP, which both have dedicated English-speaking desks and robust international services.

Novo Banco: 

Established in 2014, Novo Banco is a leading private Portuguese bank with a network of over 358 branches. It is particularly well-suited for immigrants and environmentally conscious clients, offering specialized products like the "Welcome Account" and the "Golden Key Account," which provides dedicated English-language support.

Recognized for its brokerage services, the bank also emphasizes sustainability through its "18.31 Eco Account." With digital onboarding options and a presence spanning from mainland Portugal to the Atlantic islands, it is a versatile choice for newcomers seeking modern financial solutions.

Top Features at a Glance:

Specialized Accounts: Tailored options for immigrants and eco-friendly banking.

Language Support: English-speaking services via the Golden Key Account.

Accessibility: Online account opening and a nationwide branch network.

Award-Winning: Recognized by Global Finance for excellence in brokerage.

Ideal for: New arrivals to Portugal, environmentally conscious clients, and English-speaking expats. 

ActivoBank: 

ActivoBank is the digital-first arm of the Millennium BCP Group, making it the ideal choice for those seeking modernity and cost-efficiency in the Algarve. Awarded for consumer satisfaction in 2025, the bank combines the agility of a fintech with the stability of a major financial group.

Key Highlights:

Profile: An award-winning digital bank focused on paperless processes and transparency.

Best For: Digital nomads, students, and expats who prefer managing their finances via a high-end mobile app.

Zero Fees: The "Simple Account" features no monthly maintenance fees, no annual debit card fees, and free MB WAY transfers.

International Accessibility: It is one of the few banks in Portugal that easily accepts US citizens (FATCA compliant) and provides support for crypto, stock, and ETF investments.

Travel Features: Offers options like "Activo Viagem," which provides zero fees on international purchases and ATM withdrawals.

Easy Setup: A 100% online opening process (via Digital Mobile Key or video call), allowing you to get an IBAN almost instantly.

Ideal for: Digital nomads, freelancers, and expats who want low-cost, app-based banking. 

Digital and Mobile Banks 

For everyday spending, international transfers, and flexibility, many Algarve residents complement their traditional Portuguese bank account with digital options.

Wise Multi-currency account Best exchange rates, low-cost international transfers.

N26 Digital bank Free Standard plan, app-based, EU-friendly.

Revolut Digital bank Multiple currency accounts, crypto features.

 Banco Best Online bank Non-resident accounts, €19.5/year, €40 opening fee.

Important Note: Digital banks like Wise, Revolut, and N26 are excellent for daily use but are not accepted for visa applications (D7, Golden Visa, Digital Nomad Visa) as they are not Portuguese-licensed banks.

MB WAY: Portugal's Leading Digital Payment Solution

MB WAY is Portugal's most popular mobile payment app, linking your phone number directly to your Portuguese bank card.

It allows users to send instant transfers to contacts and make contactless payments in stores using QR codes or NFC.

One of its most useful features is MB NET, which generates secure virtual cards for safer online shopping.

Widely accepted across the country, it also enables cardless cash withdrawals at any Multibanco ATM via a simple app-generated code.

Key Priorities for Portuguese Nationals in the Algarve

For locals, banking is about long-term stability and physical convenience. Choosing a bank often depends on its presence in the local community and the quality of its financial products for residents.

Key Highlights:

Branch Proximity: Residents prioritize physical access. Caixa Geral de Depósitos (CGD) and Millennium BCP lead with the most extensive branch and ATM networks across the Algarve, from coastal hubs to inland villages.

Essential Services: Portuguese nationals focus on competitive Mortgages (Crédito Habitação) and specialized business support. Banks like Santander and Novo Banco are top choices for aggressive lending and tourism-sector financing.

Digital Integration: A high-quality app is a "must" for daily life. ActivoBank and Millennium BCP are industry leaders, offering seamless MB WAY integration and modern digital document management.

Cost Efficiency: To avoid monthly maintenance fees (typically €5–€15), locals often opt for "Conta Ordenado" (salary accounts) or low-cost alternatives like Banco CTT.

Expats & Foreign Residents: Priority Factors

International residents in the Algarve prioritize ease of access, language compatibility, and global connectivity. In 2025, several Portuguese banks have tailored their services to meet these specific needs.

Key Highlights:

English-Language Support: Millennium BCP and Novo Banco are the top choices for non-Portuguese speakers, offering full English interfaces for web/app and dedicated "International Desks" in expat hubs like Vilamoura and Lagos.

Expat-Specific Accounts: Many banks now offer "Welcome Packages." Novo Banco's version is highly rated for simplifying the onboarding process for newcomers, while Santander's "Welcome Solution" includes debit cards and international insurance options.

International Connectivity: For low-cost transfers, ActivoBank stands out due to its direct integration with Wise, allowing users to send funds globally at mid-market rates directly from their banking app.

Remote Account Opening: While traditional banks often require an in-person visit for non-EU residents, Millennium BCP and Novo Banco allow initial stages to be handled via video call. For immediate use, digital banks like Revolut (which now offers Portuguese IBANs) are popular "bridge" options.

US Citizen Compliance: ActivoBank and Montepio remain the most accessible choices for US citizens, as they are well-equipped to handle the specific FATCA reporting requirements that some smaller banks avoid.

Golden Visa & D7 Applicants: 

A Portuguese bank account is not just a convenience—it is a mandatory legal requirement for residency. In 2025, Portuguese consulates and AIMA (formerly SEF) have increased scrutiny on "proof of funds," making it essential to choose a bank that understands the immigration process.

Key Highlights:

Mandatory Residency Step: To apply for a D7 or Golden Visa, you must show that funds (e.g., the minimum €10,440 for a single D7 applicant) are already deposited in a Portuguese account.

Proof of Funds: Unlike digital neobanks, these traditional institutions provide "Official Signed & Stamped" statements. In 2025, these physical or certified documents are often required by consulates over simple digital PDFs.

Non-Resident Onboarding: While opening an account 100% remotely is becoming harder, Millennium BCP and Novo Banco still allow lawyers in the Algarve to initiate the process via Power of Attorney (PoA).

US Citizen Compliance: Both Millennium and ActivoBank are well-versed in FATCA reporting, ensuring US applicants don't face unnecessary administrative delays.

Guide for Tourists & Short-Term Visitors

You do not need a Portuguese bank account for a holiday. Most modern payment methods work seamlessly across the Algarve, but knowing a few local "rules" will save you significant money in fees.

Key Highlights:

Multibanco (MB) Network: The safest way to withdraw cash. Stick to ATMs attached to actual banks or branded with the MB logo.

Daily Limits: Standard limits are €200 per transaction and €400 per day (though your home bank may have different limits).

Fee Warning (DCC): If an ATM asks to charge you in your home currency (USD/GBP), Always Choose "No" / Decline Conversion. Let your own bank handle the exchange to get a much better rate.

Avoid "Tourist" ATMs: Avoid blue-and-yellow Euronet machines. They are notorious for high hidden fees (up to 13–20%).

Contactless & Mobile Pay: Apple Pay and Google Pay are accepted in 95%+ of establishments. In 2025, even small vendors are increasingly adopting "Tap-to-Pay" on iPhones/Androids.

The "Cash Only" Exception: Some local cafes or traditional shops may only accept "Portuguese Cards" (Multibanco) and reject international Visa/Mastercard. Always carry €20–€50 in cash for these situations.

Travel Card Edge: Using Revolut or Wise is highly recommended; they offer the best exchange rates and often bypass the local card rejection issue at small shops.

The NIF (Número de Identificação Fiscal)

You cannot open an account without a NIF. For non-residents, this is typically obtained through a fiscal representative (a lawyer or specialized online service). In 2025, digital NIF certificates are standard and accepted by all banks.

The NIF is mandatory for opening any bank account in Portugal. You can obtain it: . 

 In person — At a local Finanças (Tax Office) 

Through a lawyer or fiscal representative — Required for non-EU citizens applying remotely 

Through specialized agencies — Many offer NIF + bank account packages from €250.

Tip: Many banks can assist with NIF applications as part of their expat services.

💡 The 2025 "Tourist vs. Resident" Rule:

For Tourists: Most international cards (Visa/Mastercard) will only allow you to Withdraw Cash or Check Balances.

For Residents: To access the full list of 60+ operations (like paying a utility bill or tax), you generally need a Portuguese Debit Card (look for the "MB" logo on your card).

Proof of Income (Compliance Check)

Due to strict Anti-Money Laundering (AML) laws, banks are very thorough.

Employed: Your most recent 3 payslips and an employment contract.

Self-Employed: Your latest tax return (e.g., IRS, Form 1040, or P60).

Retired: An official pension statement or social security letter.

High-Net-Worth: Some banks (like Novo Banco) may require proof of €35,000+ in liquid assets for specific expat accounts.

Quick Guide: How to Pay a Bill at an ATM

Insert your card and enter your PIN.

Select "Pagamentos e Outros Serviços" (Payments and Other Services).

Select "Pagamento de Serviços / Compras".

Enter the Entity (5 digits), Reference (9 digits), and Amount.

Proof of Address

This must be a "hard" document (PDF or paper) issued within the last 3 months.

Accepted: Electricity/water bills, bank statements, or a Portuguese "Atestado de Residência" from the Freguesia.

Not Accepted: Mobile phone bills or general marketing mail.

The Multibanco System: 

Operated by SIBS, the Multibanco network connects virtually all banks in Portugal. For residents, it is the primary tool for settling bills and managing state obligations without needing to visit a physical branch.